Always searching

Curiosity drives us. We are always searching - for new investment ideas, for better ways to construct the portfolio, and for things that could go wrong. In short, we never stop exploring ways to improve the portfolio and to help our clients.

Areté's investment principles

These are the beliefs and mental models that guide our investing:

The market is fairly efficient. The best way to exploit limited opportunities and to leverage investment acumen is to concentrate bets.

Alpha is elusive. It requires constant diligence and flexibility to consistently outperform benchmarks.

Valuation theory is valuable. Although valuation disparities may occur for shorter periods of time, stocks migrate to intrinsic value over longer periods of time.

Stock picking is the most effective strategy to outperform over the long-term.

Areté's approach to investing

We believe that an important first step to creating an investment management operation fit for the purpose of helping investors is to avoid structural obstacles to good performance. Research and empirical evidence reveal fairly clearly how investors are most likely to get the biggest bang for their investment bucks - and these are straightforward business decisions.Active managementThere is ample evidence that active management can be a productive exercise for identifying interesting opportunities and avoiding unnecessary risks as well as an essential activity for well-functioning markets.

Inefficient asset classesActive management has the greatest chance of succeeding in asset classes which are not efficiently priced. For those asset classes that are fairly efficiently priced, indexing makes more sense.

Reasonable feesThe single most important reason why most active managers underperform is because fees are too high. This is a business decision not an investment reality.

High active shareActive share is the degree to which a portfolio differs from a benchmark. Significant research suggests that portfolios with high active share tend to perform better than those with lower active share.

Areté's asset management serviceQuick takes

We manage money for individuals and institutions

We are independent are therefore are well-positioned to provide conflict-free services

We actively manage money by focusing only on segments of the market where ample opportunities exist to differentiate performance.

We currently offer a U.S. Equity Mid cap core strategy.

The strategy is available for initial investments of $100,000 or more.